What happened
Shares of Apple (AAPL 0.64%) jumped 7% on Friday after the technology leader delivered a stunning earnings report.
So what
Apple's revenue rose 11% year over year to a staggering $123.9 billion in its fiscal 2022 first quarter, which ended on Dec. 25. Strong gains in China, where Apple's sales climbed 21%, contributed to the blockbuster performance.
"This quarter's record results were made possible by our most innovative lineup of products and services ever," CEO Tim Cook said in a press release. "We are gratified to see the response from customers around the world at a time when staying connected has never been more important."
Apple is helping more people stay connected -- and delivering handsome returns to its shareholders along the way. Image source: Getty Images.
Although iPad sales fell slightly, Apple enjoyed solid growth across all its other business segments. iPhone revenue grew by 9%, despite industrywide chip shortages that have curtailed device sales. Mac and wearables sales, which increased 25% and 13%, respectively, were likewise impressive. And Apple's high-margin services segment saw revenue leap 24%.
All told, Apple's net income surged 20% to a whopping $34 billion, or $2.10 per share.
Now what
Cook expects Apple's supply chain challenges to improve in the coming quarters. That should allow the tech giant to sell even more phones and computers and broaden its installed base of users, which already stands at an incredible 1.8 billion devices.
Moreover, many of those users have not yet upgraded to Apple's newest devices. Yet Cook believes rising demand for new technologies like 5G will help spur a multi-year upgrade cycle. And that should help propel Apple's profits to even greater heights.
